Is a personal injury settlement taxable if lost wages are included?
I am going to receive a settlement and part of it is for my time off work from when I was hurt and off work for 7 months.I was injured and they are taking full responsibility for my injuries.
If it isn’t too late, have your lawyer review the papers. The company paying the settlement would prefer that as much of the money as possible be considered as taxable to you. Punitive damages are not taxable to you nor are they deductible on the company’s tax return.
Compensation for lost wages: taxable
medical expenses: nontaxable (most likely)
punitive damages: nontaxable
compensation for damaged personal property: probably not taxable (if you paid $3K for a car for which you receive $4K from insurance, $1K is taxable capital gain)
I hope this helps.
Gary
Personal Injury Claim – first 30 days after accident.MP4
|
|
Insurance Settlement Secrets: A Step by Step Guide to Get Thousands of Dollars More for Your Auto Accident Injury Without a Lawyer! (Volume 1) $18.54 This book provides a behind-the-scenes look at how insurance companies process automobile accident injury claims. Knowing how insurance companies process these claims can make the difference of receiving thousands of dollars more for your Insurance settlement! Written in plain English, the book gives readers all the tips they need to ensure they receive the settlement they deserve. Written by an i… |
|
|
Son of a Son of a Gambler: Winners, Losers, and What to do when you win the Lottery (2010 Kindle Edition) $4.99 The second book by syndicated columnist and Huffington Post contributor Don McNay touches on two central themes. Lottery winners and McNay’s perspective on life as the son of a bookmaker and professional gambler.McNay is a structured settlement consultant who has advised lottery winners and injury victims for over 27 years. He gives step by step advice for those who win a lottery and stories abo… |
|
|
What Schleier and amended s. 104(a)(2) mean to your practice: tax considerations in pleadings and settlement agreements. (section 104(a)(2) of the Internal Revenue Code): An article from: Trial $5.95 This digital document is an article from Trial, published by Association of Trial Lawyers of America on November 1, 1996. The length of the article is 5121 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplie… |
